Sunwest Bank acquires First State Bank

Sunwest Bank acquires First State Bank

September 8, 2009

Sunwest Bank has acquired First State Bank of Flagstaff, Ariz. The Federal Deposit Insurance Corporation (FDIC) accepted receivership of First State Bank from the Arizona Department of Financial Institutions, which closed First State Bank on Sept. 4. The FDIC subsequently entered into an agreement with Sunwest Bank, under which Sunwest assumed all of First State’s non-brokered deposits and loans. The deposits total approximately $88 million. Due to the Labor Day holiday, the former First State reopened Sept. 8 as part of Sunwest Bank. Existing First State customers will be able to conduct business as usual, as their money will be available through checks, ATM and debit cards. Loan customers should continue to make their payments to First State Bank as usual.
Sunwest Bank representatives will be available at the former First State branch to answer questions from current and prospective customers. Sunwest Bank is one of the strongest and healthiest banks in the Western Region of the United States, with substantial capital and liquidity.
“We are pleased with the opportunity to partner with the businesses and residents of Northern Arizona and for Sunwest Bank to become part of the community,” said Glenn Gray, president and chief executive officer of Sunwest Bank. “Sunwest Bank is a strong, well-capitalized and highly liquid community bank. Our new customers can be confident their deposits are safe in a stable bank with more than 40 years of experience and we look forward to serving all their banking needs going forward.”
At the close of Sunwest Bank’s most recent quarter, its net income grew 20 percent year-over-year for the first half of 2009, and its assets grew by 29 percent during the same period. Sunwest is well capitalized and actively lending, originating $56 million in new loan production in the first half of the year.
“We have continuously grown our net income without the need for TARP funds due to a strong capital base,” said Gray. “With realistic lending parameters throughout a time when banks were making irrational loans, our stability gives us the opportunity to help the local businesses and entrepreneurs to grow and expand their businesses. We have protected our depositors’ money, made smart loans, and are now reaping the benefits of that more savvy business conduct.”
Sunwest Bank anticipates announcing its new total assets, including those acquired in this transaction, shortly after the closing of the third quarter.
“With a great number of larger banks in Northern Arizona, residents will be comforted by the fact that Sunwest is a true community bank, providing personal service and experienced loan officers that listen and understand businesses, complimented by a practical approach to lending,” Gray said. “We look forward to partnering with local businesses and our newest customers in Arizona to show them how community banking will help them achieve their goals.”
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